StratCap Digital REIT Investor Losses & Leadership Exit
James A. Condon has resigned as chairman, president, and director of StratCap Digital Infrastructure REIT Inc., the latest disruption for a non-traded, perpetual-life REIT that has already suspended investor distributions and is weighing a sale, merger, or liquidation. The White Law Group is investigating potential securities claims on behalf of investors who purchased StratCap shares through a financial advisor, and encourages investors with concerns to learn about their options through a FINRA arbitration attorney.
Leadership Changes at StratCap Digital Infrastructure REIT
According to a filing with the U.S. Securities and Exchange Commission, Condon’s resignation, effective immediately, was not due to any disagreement with the company or its board. The board appointed Adam Baxter, previously the company’s secretary and a board member since September 2024, to succeed Condon as chairman and president. Baxter has also served as secretary of the company’s external adviser and its sponsor, StratCap Investment Management LLC, since July 2025, and has been a managing director at HMC Capital, the sponsor’s parent company, since September 2024. Condon also resigned as president of the adviser and sponsor, roles Baxter has now assumed.
Separately, Bryan B. Marsh III resigned as head of data center investments for the adviser and sponsor, a departure the company also said was unrelated to any disagreement. The SEC filing stated that StratCap’s Erik Rostvold was appointed to succeed Marsh in that role. However, Rostvold told AltsWire the filing is inaccurate and that he has not taken on the data center investments position; an amended filing correcting the record is reportedly expected. As of this writing, the company has not said who, if anyone, currently holds the role — a discrepancy investors may want to watch for in the REIT’s next SEC filing.
About StratCap Digital Infrastructure REIT
Formerly known as Strategic Wireless Infrastructure Fund II, StratCap Digital Infrastructure REIT focuses on acquiring and managing digital infrastructure assets, including cell towers, data centers, wireless easements, and fiber networks. In December 2025, the REIT sold a portfolio of 48 wireless towers for approximately $55.1 million. It continues to hold two data centers directly and a 51% joint-venture interest in roughly 150 additional cell tower sites.
NAV Decline and Suspended Distributions
The White Law Group’s original investigation into StratCap centered on a decline in the REIT’s reported net asset value. According to an SEC filing, the company’s total NAV fell approximately 1.18%, from about $123.78 million to $122.31 million, and its NAV per Class A share dropped from $10.3287 to $10.2317, as of March 31, 2025.
That decline has continued. Under a more recent SEC filing dated July 24, 2026, StratCap’s board approved an updated NAV of $9.6225 per Class A share as of June 30, 2026 — down roughly 6% from March 2025 — with total company NAV at approximately $112.19 million, a decline of about 8% over the same period. The board has also suspended monthly cash distributions since April 2026 as part of a formal strategic alternatives review, and has not authorized a distribution for the third quarter of 2026. The company’s public offering and distribution reinvestment plan remain terminated, and its share repurchase plan remains largely suspended. As of a July 8, 2026 letter to stockholders, the board had not settled on a specific path forward among a sale, merger, recapitalization, or liquidation.
Since non-traded REITs are illiquid, investors generally cannot sell shares on demand if values continue to decline or the strategic review is prolonged.
Risks of Non-Traded REITs
The NAV decline, suspended distributions, and recent leadership turnover at StratCap Digital Infrastructure REIT together highlight several risks investors face with non-traded REITs:
- Liquidity Risk: Unlike publicly traded REITs, non-traded REIT shares are illiquid. Investors may be unable to sell their positions easily, particularly while a strategic alternatives review is pending.
- Valuation Risk: NAV is based on appraisals and financial assumptions. Continued declines may signal changes in underlying property performance or market conditions.
- Concentration Risk: StratCap’s focus on digital infrastructure means returns are tied closely to demand for towers and data centers, as well as tenant stability.
- Leadership and Governance Risk: The resignations of the REIT’s president and its head of data center investments, along with an SEC filing StratCap has acknowledged contains inaccurate information about who succeeded him, raise governance questions for investors to monitor during the ongoing strategic review.
- High Commissions and Fees: Non-traded REITs often carry significant upfront costs, which can erode investor returns.
Potential Recovery Options
If you invested in StratCap Digital Infrastructure REIT at the recommendation of your financial advisor, you may have legal options. Brokerage firms are required to perform adequate due diligence and ensure that investment recommendations are suitable for their clients. Failure to do so may open the door for claims to recover losses.
FINRA Arbitration for Non-Traded REIT Losses
Investors who believe they were misled or improperly advised may be able to pursue claims through FINRA arbitration. This forum provides a path for individual investors to seek damages from the brokerage firms that sold unsuitable investments.
Free Consultation with a Securities Attorney
If you have concerns about your investment in StratCap Digital Infrastructure REIT or other non-traded REITs, The White Law Group, national securities fraud attorneys with offices in Chicago and Seattle, may be able to help. Please contact us or call (888) 637-5510 for a free consultation with a securities attorney.
FAQs — StratCap Digital Infrastructure REIT
What does the leadership shake-up mean for StratCap investors?
The resignations of StratCap’s president and its head of data center investments, alongside an SEC filing the company has acknowledged is inaccurate, add uncertainty during an already-pending review of the REIT’s strategic options. Investors may want to watch for the company’s amended filing and any further leadership updates.
What does StratCap’s declining NAV mean for non-traded REIT investors?
A falling NAV can signal shifts in asset performance or market conditions. Since non-traded REITs are illiquid, investors may not be able to sell if values continue to decline, particularly while distributions remain suspended and the board weighs a sale, merger, or liquidation.
How can investors recover losses in StratCap Digital Infrastructure REIT?
Investors may be able to file claims through FINRA arbitration against the brokerage firms that recommended unsuitable REIT investments.
